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25. Cook Islands Federation. Balances, 30th June, 1896. £ B , <j. Balances, 30th June, 1897. £ s . <j. Bonds on hand .. .. .. .. 173 11 1 Bonds on hand .. .. .. .. 175 18 9 Cash on hand (Mr. Gamier) .. .. 47 711 Cash on hand (Mr. Gamier) .. .. 41 2 1 Bank balance, Earotonga .. .. .. 42 15 2 Bank balances, Auckland .. .. .. 68 0 7 Bank balance, Auckland .. .. .. 81 15 0 Advances to Makea Daniela .. .. 26 14 3 Advances from P.O. Bank Account in Auck- Advances from P.O. Bank Account in Auckland in payment of Auckland accounts .. 135 18 9 land in payment of Auckland accounts .. 39 13 10 351 9 6 Less overdraft, bank, Rarotonga .. .. 293 19 1 £481 7 11 £57 10 5 Earotonga, 28th December, 1897. J. Scabd, Auditor.

(26.,) Memorandum by British Resident. British Residency, Earotonga, 28th December, 1897. The Arikis should have asked me if they wished me to be present. I had never failed to attend a meeting when invited by them. The Parliament's meetings were public. The Chairman, Mr. Salmon, had given most improper facilities to publicly insult me in a set speech to Parliament, and to place that speech on record. It was in connection with this that Makea Daniela, the Clerk, tendered his resignation. As to the petition for my recall, it was signed on the Tuesday, and must have been prepared before then. I have never been able to discover who were the advisers of Arikis and Parliament. Some European they must have had. Frederick J. Moss.

From Mr. Salmon to the British Eesident. Sir, — Rarotonga, 3rd September, 1897. I have the honour to inform you that Parliament and the Arikis met to-day to consider your letter re the Federal Court Bill, and it was resolved to meet again on Monday, and that you be asked to be present. I have, &c, F. J. Moss, Esq., British Resident, Rarotonga. J. M. Salmon, Chairman of Parliament.

Cook Islands Parliament. The Bbitish Resident to the Parliament. British Residency, Earotonga, 4th September, 1897. Salutations ! —I have received from your Chairman a letter, dated 3rd instant, informing me that Parliament and the Arikis are to meet again on Monday to consider my letter respecting the Federal Court Bill, and that it was resolved " that you be asked to be present." I find also that, at the same meeting, my official advice as to the reception of petitions calculated to bring discredit on Parliament was deliberately disregarded by your Arikis, your Chairman, and yourselves. In order to make successful a system of government so entirely new as that which was begun in 1891, I took upon myself much work and responsibility quite outside of my duty as British Resident. For some time past I have had reason to think that the Arikis and the Parliament were becoming discontented with this position of affairs, and were suffering themselves to be guided by the advice of irresponsible and incompetent persons. The Chairman who presides over and guides your counsels is for the first time a European. Unfortunately he is also one between whom and myself there never has been, and never is likely to be, the least sympathy or accord. It appears to me that the time has come when I should confine myself to the duties of my own office, and can do so without endangering the actual existence of the Government which we have worked together to build. I desire, therefore, to inform you that I shall henceforth take that course—see that the honour of the British flag is upheld in the Protectorate, that no injustice is done to any one, and that justice shall be freely given to all, that no laws are passed and no official appointments made without my approval, and that no means are neglected to further the trade and production of the islands. I shall also be ready at all times to give my advice to the Governments, Parliament, and Councils when asked, and shall tender it to them whenever such advice seems to me to be necessary. None of these duties call for my attendance at the conference to be held on Monday on the Federal Court Bill. My advice on that has been already fully given and is well known to you all. From your friend, Frederick J. Moss, British Resident.

The British Resident to the Parliament. 14th September, 1897. Salutations ! —I have your letter of the 13th instant. I have not accepted the resignation of Makea Daniela, but hope to see him continue to hold the offices which he has so well filled sinoe Parliament and Government began. In any case I will not sanction Mr. Goodwin's appointment. He is one of the Europeans who have misled the Arikis and yourselves and tried to raise bad feeling towards the British Resident and obstruct and annoy him as far as they possibly could and in every possible way. He is one of those who excited you against the Federal Court Bill as being intended to take away your mana, which is not true. This Bill would have made your mana greater and stronger by showing that you wanted to use the mana, so as to do good and provide justice quickly for all. Mr. Goodwin is also a friend of your Chairman, Mr. Salmon, who is a European .mixed up with the same people, and who is reported as having told you that the Federal Court Bill would take away not only your mana, but your land, which is also quite untrue. The work of the Parliament is nearly over. Only the Appropriation Act is left. The books and papers and accounts are with Mr. Gamier, who receives all the money, and with Makea Daniela, who pays it away. When I want information I write for it to Mr. Gamier or to Makea Daniela, and you can at any time do the came. Enough. Frederick J. Moss, British Resident.